updated 02:25 pm EST, Tue March 16, 2004

G5 sales may fall short

Despite the success of the iPod in consumer markets, Banc of America Securities analyst Keith Bachman today for the second quarter in a row. "We believe [G5 sales are] the single-best gauge of the growth potential of Apple," Bachman said in a research note. "The G5 is more important that the iPod in terms of (earnings per share) impact." Apple shipped 206,000 G5 systems last quarter, falling short of many analysts' estimates. Bachman estimates that Apple will ship 195,000 G5s this quarter. After running up to 27.56 earlier this month on excitement about the iPod's success, shares of Apple have since fallen about two points.

Then...

I agree

The problem is people are waiting. The quarter Apple releases the 2nd Generation of G5's will be an extremely good quarter for Apple. I'm buying 2 myself, one for home and one for work. I'm sure many other people are waiting for the 2nd Gen G5's.

Bad Case of the Waits

Apple has four major lines of computers - PowerBooks, iBooks, iMacs, and desktops. (I'm leaving out the eMac, I know.) Of those, the only one selling particularly well is the PowerBook line. That's in keeping with the "Year of the PowerBook", and it's important, but the analyst has a valid point. The G5 is a breakout machine, and should be selling better. It's also one of Apple's higher margin lines, and it targets their most captive power-user audience. Being on track to sell less than a million is not inspiring.

My guess is that much of the market is doing what an earlier poster suggested - waiting for the next round. My hope is that we'll have G5s in the iMac and PowerBook lines before September, because the G4 is getting so long in the tooth. I know that I'm holding off at work and home to upgrade waiting for that transition. I squeeze six or more years out of my hardware, and I don't want to buy equipment running off a chip at the end of its life cycle.

bring em on

Everyone is waiting. Most people expected the damn 2nd gen. G5 in January, myself included. I've been waiting to buy one since December... I'm not gonna buy one of the first gen. models because a new model is "imminent".

HURRY THE h*** UP. I'm getting sick of my old a** computer and I need a new one. INTRODUCE THEM ALREADY!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Serves them...

right! This hold up in releasing new PowerMacs is the leading factor in weaker than expected sales. A lot of people (including myself) have been burned enough to know not to buy a first generation mac. So, not only are we waiting because we know updates have to be right around the corner, but also because we don't want to take our chances on a first gen model. I really hoped when they announced the G5 that the long waits for faster models like the G4 was going to end. Apparently not.

Apple seems pretty content to wallow complacently where they are at. I realize that the PC world hasn't hit much great stride since going to 3GHz last summer as well, but that only exemplifies the problem. Apple actually had a chance to "catch up" in terms of pure mhz numbers, but instead has taken an approach that if the other side isn't going to beat us to death, then they rather wait until as long as possible so they can make as much profit as possible from 7 month old processors, which they have to be getting cheaper now than they were in the beginning and they would get the 2.5+GHz for. I'm sorry, but a product update in the PC(mac) world shouldn't take longer 6 months max, and at this rate, it feels as though they are going to skip a generation of processors and go straight to 3.0GHz for August. (LOL, 3GHz by summer's end! HA! :)

And I would argue that you can hinge the future of Apple on the success of the G5. The G5 is the company's flagship in computers and statement they make to the world. If they don't sell well, developers will assume the mac is only good for consumer apps (because all that will be selling well are the consumer machines), and Apple already has much of that market cornered, and thus there will be no one supporting the mac eventually. Its rather extreme, but there is no doubt that the G5 HAS to sell well. Unless Apple wants to become a company that only markets iPods.

waiting

For me, I am waiting for the dual 3.0's to come out because after that point, I will not need a faster computer for a VERY long time. I am also assuming that all the specs of the the g5 rev b will have a faster bus. and more cool stuff like pci express , X, AGP 8x, etc etc and a fatsre bus. I do a lot of 3d graphics and FCP stuff, so a fatser that g4 733 would be great, and i wouldnt have to upgrade for a long time. especially when a 64 bit OS ships.it always pays to have a faster machine in terms of when rendering needs a speed boost, but a dual 3.0 is AY more than needed by most people. the only ones that need that are those running servers, game players, those using high end math apps, and those doing high end graphics.

LIARS

Good Grief...

Many of you act as if Apple has some control over getting these machines out the door faster. To what end? It's not like they're profiting from delaying the release - they can read sales figures as well as stock analysts.

They are dependent on IBM getting them the chips. The XServes aren't late because some marketing honcho at Apple is holding them up; the processors aren't yet available in high enough numbers. At least we can expect that IBM will come through, even if it's a little longer than we want. Thank goodness it isn't Motorola we're waiting for.

The new G5 processor in the Xserves is the next threshold. It uses less than half the power and produces way less heat than the current G5, which opens the doors to iMac and PowerBook form factors in a generation or two. I'm sure Apple would love to move these things along faster.

iMac sales are way down, too, so I hope Steve can poke IBM in the behind and get things moving. I was not as concerned about their lack of sales in the consumer space right now thinking the G5s were carrying them; now we know that they aren't being successul in either the pro or consumer market at the moment. Bummer. Thank goodness for iPods!

Whaaaa?

Oh, for criminy pity's sake! Noisy power supplies and fans?! PLEASE tell me you're just joshing. The G5s have *never* had a problem with noisy power supplies and fans. That was the G4 series. The G5 towers are whisper quiet. One of the big marketing points about the G5s is that they don't make a lot of noise.

Why wait?

If you need a PowerMac right now, buy it. It doesn't matter if you don't have the fastest machine available. A new one isn't going to be that much faster than what is available now. It's only a clock speed increase. A 20-25% clock speed increase is not going to mean the computer is 20-25% faster anyway.

me too, I'm waiting

I am a slow upgrader and I like to maximize my upgrade when I finally do it. To buy a new G5 right now would not be maximizing my $$ over time. Unless you are creaking along with something totally outdated and have a time-sensitive project, you'd have to be foolish to upgrade right now.

ED

Ed, you are missing the point. The point is Apple is not shipping enough G5s out the door. Getting iBM to get more chips out of their foundry is one thing but Apple is not moving current G5s. I mean, they had to do a $300 sale on new single 1.8 to move them! That has got to hurt the margin.